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<Research>UBS Keeps AIA (01299.HK) Buy Rating; Mkt Appears to Have Largely Priced in Worst Case
Recommend 9 Positive 20 Negative 10 |
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The market appears to have largely priced in the worst-case impact of Decree No. 837 on Mainland China Visitor (MCV) insurance business, assuming future value of new business (VNB) from mainland visitors would be zero, UBS said in a research report. The broker believed that as long as the regulatory outcome does not involve a universal ban on new business from mainland visitors, AIA (01299.HK) shares have upside and current concerns seem overdone. UBS cited three supporting factors. First, discussions with intermediaries such as agents indicate that operations, including sales and premium payments, remain stable. The Hong Kong Monetary Authority (HKMA)’s recent restrictions on bank investment accounts only target securities transactions and are unrelated to insurance purchases or payments. Second, MCV insurance business remains feasible under the regulatory frameworks of both Mainland China and Hong Kong. Third, Hong Kong Financial Secretary Paul Chan made constructive remarks at an event on 10 June 2026, reiterating the central government’s strong support for Hong Kong. In addition, on the ride of intensive promotional activities since mid-May, UBS expected AIA Hong Kong’s VNB performance in 2Q may beat market expectations. The broker reiterated its Buy rating on AIA and maintained its TP at HKD104. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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